System and method for purchasing game and lottery tickets

ABSTRACT

A system and method for buying tickets for games or lotteries in which a seller receives predicted game or lottery outcome data communicated from a buyer over a communication path. The seller generates a printed ticket based on the received outcome data and the seller transfers the printed ticket to a custodian that holds the printed ticket on behalf of the buyer. The custodian transmits data relating to the printed ticket to the buyer over the communication path and notifies the buyer if the printed ticket corresponds to an actual game or lottery outcome.

RELATED APPLICATION

This application is a continuation of application Ser. No. 13/541,444,filed Jul. 3, 2012, which is a divisional of application Ser. No.12/289,303, filed Oct. 24, 2008, which is a divisional of applicationSer. No. 11/339,477, filed Jan. 26, 2006, now U.S. Pat. No. 7,677,453,which is a divisional of Ser. No. 10/405,235, filed Apr. 3, 2003, nowU.S. Pat. No. 7,024,375, which claims the benefit of U.S. ProvisionalApplication No. 60/388,733, filed Jun. 17, 2002. The contents of each ofthese applications are incorporated herein in their entirety.

TECHNICAL FIELD

The present invention generally relates to systems and methods forpurchasing tickets and, more particularly, to such systems and methodsinvolving the use of a trusted third party intermediary (custodian).Even more specifically, the present invention relates to a system andmethod for wagering on the outcomes of gaming events or playing lotterygames by perfecting the buyer's security interest to the physical/bearergame tickets generated by an; authorized sales agent of a gaming orlottery agency.

BACKGROUND AND SUMMARY

Traditionally, when wagering on the outcome of gaming events or playinglottery games, a buyer must go to the gaming agency itself (such as arace track) or to a governmentally authorized site (such as OTB aka OffTrack Betting) or to a lottery retailer. The buyer completes a game cardor communicates to the sales agent the (alpha) numeric sequence(s) he orshe wishes to play, and pays the sales agent the wager. The sales agententers the selections into either an on-site or on-line terminal that isconnected to the gaming or lottery's processing system. The chosen(alpha) numeric sequence is recorded, and then a coded physical/bearerclaim ticket with the details of the (alpha) numeric sequence isinstantaneously issued and printed. The physical/bearer ticket is handedover to the buyer, and the buyer takes possession of the ticket. Thegaming or lottery agency recognizes the actual physical/bearer ticket asthe sole form of legal claim to any winnings or prizes, with oneexception.

The exception is when the buyer enters into a subscription arrangementwith a lottery agency in which the buyer subscribes to the same (alpha)numeric sequence for a fixed number of future drawings. In thisinstance, the buyer must complete an application form detailing personalinformation and submit the application and payment to the agency. Thelottery agency records the subscription into its system and issues anofficial acknowledgement to the subscriber of the (alpha) numericsequence, the subscription period and number of future drawings. Thepersonal information is recorded in the lottery agency's database.

The subscription agreement is the sole exception where a gaming orlottery agency does not issue a physical ticket, but has a recognizedpotential legal claim. However, the subscription process generates verylow sales volume for the sponsors because of the inconvenience of theenrollment process and the lack of flexibility offered to the buyer.

At present, numerous Internet sites offer wagering through virtualcasinos, private or offshore lottery drawings and interactive games.However, in the United States, no federal, state or local government oragency has offered wagering, gaming or playing the lottery via theInternet. One reason for this is that changing the current bearer ticketenvironment into a bearer ticket and ticket-less environment requires amajor process change, and a major systems rewrite (“process” change).Another reason is that a widespread ticket-less process invitessignificant fraud, legal and logistical exposure (“risk” change) to thesponsoring entity. Many proposals have been made regarding new systemsand methods that require the sponsoring entity to adopt a major“process” and/or “risk” change to accommodate the Internet as adistribution channel. To date, in the United States, no federal, stateor local government or agency has adopted or embraced any change for itsgaming or lottery system from the current physical/bearer ticket process(excluding subscriptions), which by its very nature is Internetunfriendly.

The example system and method described herein do not require thesponsoring entity to adopt a major “process” and/or “risk” change toaccommodate the Internet as a distribution channel. The government's(and/or its agent's) interest is satisfied while a buyer's legal claimto physical/bearer tickets for transactions initiated over the Internetis safeguarded. In the disclosed example system and method, the actualphysical/bearer ticket is in the physical possession of acustodian/safekeeper, and the custodian/safekeeper maintains custody ofthe ticket on behalf of the buyer. The introduction of an independentthird party custodian/safekeeper to hold in custody the physical bearerticket avoids potential conflicts of interest between buyer and seller,and remedies the risk concerns of the governmental sponsors.

An example system and method are described below which facilitate abuyer's perfection of his/her/their security interest to physical/bearergame tickets, purchased and issued from a seller (e.g., an authorizedsales agent of a gaming and/or lottery agency) through the use of anindependent custodian. This makes the purchase of gaming and lotterytickets viable when and where the initiation of the transaction is overa communication path like the Internet. No substantial modification tothe present gaming or lottery systems that issue physical bearer ticketsis required—the system and method described herein may be provided as anadd-on to existing gaming or lottery systems.

The example security interest perfection system and method describedherein includes three aspects: a communication network, a physical backoffice operation, and contractual custodial/safekeeping agreements. Thisis referred to herein as the “clicks,” “bricks” and “sticks” framework.The first framework is systems or “clicks” and encompasses an open-endedarchitecture for a plurality of buyers using the Internet to purchasegaming or lottery tickets and to receive confirmation of such purchases;their Internet Service Provider; and a designated sales agent systemwhich includes web servers, firewalls, security, authentication andauthorization systems, and host machines structured in a distributedcomputing environment. The second framework is a physical processingmechanism or “bricks” in which on line gaming and/or lottery systemsgenerate actual physical/bearer tickets and are safekept, and where allrelevant information of those tickets are imaged and recorded. The thirdframework is the execution by the buyer, sales agent and/orcustodian/safekeeper of a roles and responsibility agreement. “Sticks”refers to a legal agreement executed on line that delineates a legal andcontractual engagement of an independent third party (e.g., thecustodian/safekeeper) thereby clearly segregating the interest of thebuyer and seller.

These and other features and advantages of the present invention willbecome apparent from the following detailed description of illustrativeembodiments, which is to be read in connection with the accompanyingdrawings.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a generalized block diagram of a system 10 in accordance withan illustrative embodiment;

FIG. 2 is a block diagram of an example embodiment of the system shownin FIG. 1;

FIGS. 3A and 3B are flow charts of processes carried out in the systemof FIG. 2;

FIG. 4 is a block diagram of the “clicks” framework;

FIGS. 5A and 5B are block diagrams of the “bricks” framework;

FIG. 6 is a block diagram of the “sticks” framework; and

FIG. 7 is a generalized block diagram of an example computer system.

DETAILED DESCRIPTION

The various illustrative embodiments described below relate to a systemand method for enabling a buyer to perfect his/her/their securityinterest to physical/bearer game tickets purchased over a communicationnetwork and issued from an authorized sales agent of a gaming and/orlottery agency. In certain particular illustrative embodiments, thesystem and method enable the perfection of a security interest tophysical/bearer game tickets in which the purchase transaction isinitiated on the Internet or World Wide Web. “Buyer” as used herein mayrefer to an individual or to a group of individuals. That is, a group ofindividuals may arrange to purchase one or more tickets using the systemand method described herein.

FIG. 1 is a generalized block diagram of an overall system 10 thatincludes at least one seller unit 12, a plurality of buyer units 14, acustodian unit 16, a gaming or lottery agency unit 18, and a third-partytransaction vendor/servicer unit 20. The seller unit 12, the custodianunit 16, the gaming or lottery agency unit 18 and the third-partytransaction vendor/servicer unit 20 may be located at different,remotely located facilities and operated by respective operators. Ofcourse, one or more of these units may be located at the same facilityand operated by the same operator. For example, the seller unit 12 andthe custodian unit 16 may be located at the same facility and operatedeither by the same operator or by operators of their respectiveorganizations.

Various communication paths enable communication among these systemunits. For example, communication paths 22 enable communication betweenseller unit 12 and buyer unit 14; a communication path 24 enablescommunication between seller unit 12 and custodian unit 16; acommunication path 26 enables communication between seller unit 12 andgaming or lottery agency unit 18; a communication path 28 enablescommunication between seller unit 12 and third party vendor/servicerunit 20; and communication paths 34 enable communication betweencustodian unit 16 and buyer units 14. The communication paths 22, 24,26, 28 and 34 may be wired or wireless paths and may each be comprisedof dedicated (point-to-point) paths and/or networks such as local areanetworks (LANs), metropolitan area networks (MANs), wide area networks(WANs), and the like. Although shown in FIG. 1 as being separate, someof the communication paths may be the same or may include commonportions. For example, all the communication paths could pass through acommon network such as the Internet.

The buyer units 14 are typically located at geographically remotelocations with respect to each other and are connected for two-waycommunication with the seller unit 12 over the communication paths 22.To enable communication over paths 22, the seller unit(s) 12 and buyerunits 14 include (or are connected to) communication circuitry such asmodems, network adapters and the like. In one illustrative embodiment,the seller and buyer units 12, 14 comprise respective computer systemscoupled for communication over the Internet or World Wide Web. Theseller unit 12 communicates with gaming or lottery agency unit 18 togenerate the physical/bearer tickets as detailed in a purchasetransaction. The seller unit 12 communicates with custodian/safekeeperunit 16 to process and hold in custody the physical/bearer ticket(s).Seller unit 12 transmits to any of the relevant parties to thetransaction all pertinent physical/bearer ticket data for identificationincluding tracking data, prize awards and seller data. The seller unit12 communicates with third party transaction vendor/servicer unit 20 forthe assessment and processing of payment by a buyer to the seller fordesired purchase transactions. The seller unit 12 also communicates withthird party vendor/servicer unit 20 to credit to the buyer monetaryprizes in compliance with conditions promulgated by regulatory agencies.The seller unit 12 communicates to the buyer units 14 any specialhandling or claims administration processes to monetary prizes incompliance with procedures, rules and regulations promulgated by theregulatory agencies.

The custodian/safekeeper unit 16 receives transmissions from seller unit12 and/or gaming or lottery agency unit 18 which include purchase dataassociated with each physical/bearer ticket produced. Limitations may beimposed by regulatory agencies on the communication paths that mayconnect to the gaming or lottery agency unit 18. In such cases, a directcommunication link between the gaming or lottery agency unit 18 and thecustodian/safekeeper unit 16 may not be permitted. If the gaming/lotteryagency permits only a communication path to the seller unit 12, then theseller unit 12 relays any purchase information derived from the gamingor lottery agency unit 18 to the custodian unit 16. The purchase datamay, for example, include tracking data for each ticket. This trackingdata may include, but is not limited to, a unique serial code for theticket, an identifier (ID) identifying the seller of the ticket and anidentifier of the terminal of the seller that printed the ticket. Ofcourse, any other data or codes that are required or determined to berelevant by the gaming or lottery agency and/or the custodian/safekeeperfor the identification of a legal claim to winning prizes or fortracking purposes may be stored. The custodian/safekeeper unit 16communicates to the buyer units 14 confirmation of the purchase oftickets, which may include tracking data and/or images ofphysical/bearer tickets held in custody on behalf of buyer. Ifapplicable, the custodian/safekeeper unit 16 also communicates dataregarding prize winnings and the credit of these winnings to the buyer'saccount (e.g., credit card, bank account, etc.) or the appropriatemethodologies for claiming such prizes.

If the communication path 26 between the gaming or lottery agency unit18 and the seller unit 12 can not be established, the purchase ortracking data, which may include, but is not limited to, a unique serialcode for the ticket, and identifier (ID) identifying the seller of theticket and an identifier of the terminal of the seller that printed theticket, or any other data or codes that are required or determined to berelevant by the gaming or lottery agency and/or the custodian/safekeeperfor the identification of a legal claim to winning prizes or fortracking purposes, can be obtained directly from the actual physicalticket through data and image recognition technology employed by theseller unit 12 and/or the custodian/safekeeper unit 16. Thecustodian/safekeeper unit 16 communicates to the buyer units 14confirmation of the purchase of tickets, which may include tracking dataand/or images of physical/bearer tickets held in custody on behalf ofbuyer.

The physical/bearer tickets produced by the seller unit 12 arephysically transferred to a reader/sorter of the custodian unit 16,which images the tickets and stores these images in a database alongwith corresponding tracking data. The physical tickets are then storedat the custodian facility. The ticket images and/or tracking data aretransmitted to the buyer unit from which the ticket was purchased and,if desired, to seller unit 12 for storage in a database thereof. Thereader/sorter of the custodian/safekeeper unit 16 preferably includesthe ability to recognize on a dynamic basis any data string printed onthe physical/bearer ticket and the recognition of these data strings ispreferably not restricted to any predefined fields. Data stringrecognition processes facilitate ticket image retrieval anddetermination of the tracking data. The custodian/safekeeper unit 16also bundles the physical/bearer tickets, codes the bundles andsafekeeps the coded bundles in coded cells at a secure location (e.g., avault) of the custodian's facility. The bundling, coding and transportto the secure location may be performed automatically or manually. Allrelevant information regarding the bundling, coding and storage locationis recorded and stored at the custodian/safekeeper unit 16 and may, ifdesired, be transmitted to the seller unit 12 and the buyer unit fromwhich the ticket was purchased.

The seller unit 12 is capable of providing to the buyer units 14information and contractual agreements including, but not limited to,custodial/safekeeping agreements and of receiving and storingcustodial/safekeeping agreements executed by the buyers. The buyerunit's access to seller unit 12 is controlled, based on the buyer'sexecution of custodial/safekeeping agreement and on the buyer's level ofengagement to consummate a purchase transaction. Confirmation of anexecuted custodial/safekeeping agreement and a consummated purchasetransaction between and amongst all relevant parties is communicated bythe seller and/or custodian unit to the buyer unit along with anelectronic image of the bearer ticket(s) printed as a result of thetransaction.

Significant levels of system firewalls and authentication processes areused to screen and to prevent unauthorized access to seller unit 12.Authentication processes are used to validate the identity of the sellerunit to the buyer.

The outcome data for the game or lottery entered by the buyer iscommunicated to a seller unit ticket machine which is linked andcommunicates with the gaming or lottery agency unit 18. The seller unitticket machine is typically located at the site of a trusted third partysuch as a bank, a financial institution or other party with 24/7 securedfacilities. The seller unit ticket machine is provided with an interfacefor communication within other processors and databases of the sellerunit 12. If such communication involves the Internet, a server may beprovided for the Internet access by the seller unit and this server mayprovide the purchase information to the ticket machine. The serverfunctionality may be provided via stand-alone equipment or thisfunctionality may be built into the ticket machine.

The outcome data supplied to the seller unit ticket machine from otherprocessors of seller unit 12 is used to generate printed tickets. Theseller unit ticket machine actually generates printed tickets and thebuyer is provided with an electronic receipt of his/her/their purchase.The printed tickets are maintained in the custody of the trusted thirdparty (“custodian/safekeeper”) and a tracking mechanism is provided totrack the printed tickets. For example, the printed tickets may beoptically scanned and images of the scanned tickets may be stored alongwith relevant purchase data (e.g., tracking data; name of buyer; buyercontact information such as mailing address, e-mail address, and/ortelephone number; time of purchase; etc.) A database of thecustodian/safekeeper unit 16 stores data that records the user'spurchases.

The purchase data, along with information regarding winnings, losses,etc., may be maintained in the database of the custodian/safekeeper unit16 and access to the database may be provided to the buyers. Forexample, the purchase data may be accessible via the Internet and thebuyer provided with a spreadsheet-like presentation showing purchasedata for some period of time. Access to such data may be limited, forexample, by requiring entry of an appropriate password or some othertechnique for verifying the identity of the person accessing the data.

The amount of the purchase and/or any winnings may be deducted fromand/or added to an account of the buyer (such as a bank account, creditcard or debit card) by third party transaction vendor/servicer unit 20.Of course, the use of a third party transaction vendor/servicer unit isnot required. For example, the buyer may set up an account with theseller or the custodian and the purchase and/or winning amounts may becredited to and deducted from such an account. In still anothercontemplated implementation, the ticket buyer may purchase cards similarto calling cards, which provide the buyer with a certain amount ($5,$10, $50, etc.) of credit that may be used to purchase tickets. Thesecards may, for example, include a magnetic strip that is activated atthe time of purchase and is readable by the buyer unit used by thebuyer. Alternatively, the cards may include a number that is entered bythe user to permit charges to be incurred against the pre-paid amount.

The seller unit 12 and/or custodian/safekeeper unit 16 may be updatedwith actual outcome data such as winning lottery numbers, winninghorses, winning jai alai players, etc. This outcome data may be used toautomatically generate an electronic communication to the buyer using,for example, contact information provided by the buyer. Thecommunication may, for example, take the form of an e-mail communicationthat includes the outcome data and how the buyer fared (e.g., how muchwon or lost, etc.). The seller unit 12 and/or custodian/safekeeper unit16 may also be configured to telephone winners to inform them of theirwinnings. The communication to the buyer may prompt the buyer for aresponse. For example, the buyer may be asked whether he/she wishes thecustodian to store losing printed tickets for some period of time (e.g.,for tax purposes) or simply destroy them.

FIG. 2 is a block diagram of an example implementation of the systemshown in FIG. 1. As shown in FIG. 2, buyer units 114 may include laptopcomputers 140 and personal computers 142. Of course, other types ofbuyer units may also be utilized within the system and method describedherein. For example, the buyer units may be kiosks located at publicfacilities such as malls, airports, etc.; hand-held wireless devicessuch as personal digital assistants (PDAs) or wireless telephones; orany other device capable of selecting outcomes of gaming or lotteryevents, entering relevant personal information, payment formats andreceiving communications from seller unit 112. Buyer units 114 connectto a communication path 122 via a communication circuit such as a modem152, a DSL connection 154, a T1 connection 156 or some other type ofnetwork connection 158. Buyers use buyer units 114 to connect throughthe communication path 122 to seller unit 112 (in particular, a web sitemaintained by seller unit 112). Communication path 122 is typically theInternet, but may of course be any type of wired or wirelesscommunication path. The buyer unit provides an interface usable toeffect purchases of bearer tickets. The particulars of the interfacewill depend at least on part on the type of buyer unit. For example, theinterface provided for a PDA or wireless telephone may be different thanthe interface provided for a personal or notebook computer inconsideration of the different screen sizes and input devices typicallyassociated with these devices.

Seller unit 112 includes one or more web servers 160 whose loads arebalanced by a load balancer 162. Seller unit 112 also includes one ormore gaming system computers 164 whose loads are balanced by a loadbalancer 166. A database 168 is accessible by the gaming systemcomputers 164. Web servers 160, a security monitoring system computer170, one or more security system computers 172, a load balancer 174 forbalancing the load of the security system computers, a database 176accessible by the security system computers 172, and an arrangement offirewalls 178, 180, 182, 184, and 186 provide security for seller unit112.

The web servers 160 provide security in a couple of ways. First, theyencrypt data transmissions. They also perform cyclical redundancychecking (CRC) on the data transmissions. CRC verifies that the datatransmissions are not altered in any way—inadvertently or on purpose.Web servers 160 also provide a mechanism that allows authentication ofthe web servers 160 so that components communicating with the serversknow the web servers 160 are who they claim to be. The securitymonitoring system computer 170 provides an administrative interface tothe security software installed in seller unit 112. Security monitoringsystems computer functionality can be distributed to other computerplatforms or placed on standalone platforms as shown in this diagram.Typical security software verifies the operating system's securitysettings or performs real-time monitoring of an operating system'ssecurity settings.

The security system computers 172 provide an authentication mechanismthat lets buyers connect to the gaming system computer(s) 164. By way ofexample, the authentication method could consist of user name/passwordcombinations, biometrics, physical tokens (like SecureID cards), etc.The security system computers 172 also provide a method to place usersof the seller unit 112 into predetermined logical groups. This groupingmechanism allows the segregation of users by predetermined functionssuch as buyer, system administrator, system operator, securityadministrator, etc. The security system computers 172 protect the gamingsystem computer(s) 164 from both internal users (e.g., employees of theseller) and external users (e.g., potential buyers).

The security system computer 172 uses database 176 to store userauthentication information. It can also be accessed by future securitymechanisms implemented to provide functions such as centralized useraccount management, centralized subject process/object control, etc.

Firewalls 178, 180, 182, 184, and 186 can be installed and arranged inmany ways. These firewalls are used to control the access of sourcesubjects located on one network to destination objects located onanother network. Within firewalls 178, 180, 182, 184, and 186 exist aset of rules. These rules delineate which subjects have access toobjects. At a minimum, a source to destination connection, found in afirewall 178, 180, 182, 184, and 186 rule follows Source IP address,Source Port(s), Source Mask, Destination IP address, DestinationPort(s), Destination Mask, Network Protocol, Permit or Deny, Inbound orOutbound. When data arrives at a firewall 178, 180, 182, 184, and 186 itis examined. The connection is matched against an existing firewallrule. When the match is made, the firewall 178, 180, 182, 184, and 186allows or denies the data to proceed to the destination object.

To a buy a ticket for a game or lottery, a buyer accesses the seller'sweb site using a buyer unit 114. The buyer selects a gaming event (e.g.,horse racing, dog racing, jai alai, keno, etc.) or a lottery game (e.g.,pick three, pick four, etc.) and chooses to buy a ticket. The web siteinterface may provide the buyer various options, for example, via aselectable list of options from which the buyer may make selections. Forexample, an initial list may prompt the buyer to select from amongvarious gaming events (e.g., keno, horse racing, dog racing and jaialai) and lottery games. Selection of one of these options takes thebuyer to various sub-menus and screens. For example, the buyer may beable to select from among several different types of lottery games(e.g., pick three, pick four, etc.) and/or from among lottery games runby different agencies or organizations (provided the player meets thenecessary eligibility requirements such as residency and age).Similarly, if the buyer selects the horse racing option, a sub-menu maypermit the buyer to select from among a number of different horse racingtypes (e.g., thoroughbreds, trotters, pacers) and from among a number ofdifferent tracks at which these types of races are run.

The buyer then selects desired (predicted) outcomes appropriate for theselected game. The buyer may also enter relevant personal information,payment information, and the like as needed. The transmission and/orreception of sensitive information such as credit card information maybe encrypted using known encryption techniques. Typically, the buyerselects outcomes by making (alpha) numeric selections via an inputdevice (e.g., keyboard, mouse, touch pad, touch-sensitive screen,microphone, etc.) of the buyer unit 114. The outcome data entered by thebuyer takes various forms depending on the type of ticket beingpurchased. In the case of a lottery or keno ticket, the outcomeinformation entered by the buyer may include numbers. For example, in apick-four lottery game, the buyer selects four numbers (e.g., 1234). Thenumbers may be buyer-selected numbers or may be selected by a processrunning on the buyer unit itself as described below. Alternatively, thebuyer may elect to have the lottery or keno ticket machine choose thenumbers. In the case of races or jai alai, the outcome data entered bythe buyer may include a wager amount, a selected horse, dog, player orplayers, and a finishing position (e.g., win, place or show).

As mentioned above, buyer unit 114 may run a process that automaticallygenerates outcome selections for the ticket buyer. For example, theprocess may generate outcome selections such as lottery or keno numbersbased at least in part on personal information of the buyer (e.g.,birthday, street address, children's birthdays, etc.) stored in a memoryto which the buyer unit has access. In another implementation, theprocess may generate outcome selections based at least in part onparameters sensed or sampled by buyer unit 114. For example, lottery orkeno numbers may be based on the current date or the current time.Alternatively, the outcome selections may be based on information thatbuyer unit 114 receives from data sources (not shown) such as the numberof runs scored by the user's favorite baseball team, stock marketindices, etc.

The buyer also executes a custodial agreement that sets forth therelationship between the buyer, seller and/or custodian. The executedagreement is electronically communicated to seller and custodian units112, 116 and may be stored and/or printed out by the buyer unit 114.Preferably, each of the parties to the executed agreement maintains itsown electronic and/or printed-out record of the executed agreement.Seller unit 112 confirms a buyer's compliance to gaming or lotteryagency rules and regulations. For example, some games may require theplayer to be a resident of certain states, be of a certain age, etc.This confirmation may take the form of requiring the buyer toacknowledge his/her/their residency, age, etc. on a screen of theseller's web site. Preferably, confirmation of this compliance isrequired before the ticket purchase is finalized.

The processing of payment information is accomplished by communicatingwith third party payment vendor/servicer unit 120. Third party paymentvendor/servicer unit 120 includes a transaction vendor 165 and amerchant account 167 associated with a bank account(s) 169.

The seller unit 112 also includes a gaming/lottery terminal 180 and aticket printer 186. The gaming/lottery terminal 180 communicates with agaming/lottery system computer 182 of the gaming or lottery agency unit118 in order to print out tickets at ticket printer 186. Agaming/lottery system database 184 of the gaming or lottery agency unit118 stores, for example, data about the tickets generated bygaming/lottery terminal 180 and other gaming/lottery terminals connectedthereto. Typically, the gaming/lottery system computer 182 is physicallylocated at a site chosen by the gaming/lottery agency (or at a thirdparty vendor with which the agency has contracted) that is remote fromthe gaming/lottery terminal 180. Seller unit 112 communicates withgaming or lottery agency unit 118 through the on line gaming/lotteryterminal 180 and the buyer's outcome selections are transmitted to theterminal 180. Ticket printer 186, which is connected to the terminal180, prints out the physical bearer ticket. Although ticket printer 186is shown in FIG. 2 as being physically separate from terminal 180, thesetwo components may be provided as a unitary component.

The seller and custodian units are preferably located at the samefacility and may be the subject of a contractual agreement between theseller and custodian. Locating the seller and custodian units atdifferent, remotely located facilities requires additional logistics toeffect the transfer of the printed tickets from the facility at whichthe seller unit is located to the facility at which the custodian unitis located. While such an arrangement may be utilized, it is likely tomore costly than locating the seller and custodian units at the samefacility. In the FIG. 2 example embodiment, the seller and custodian aredifferent entities and the custodian is introduced to avoid a conflictof interest between the seller and buyer. Thus, while the seller sellsthe ticket to the buyer, the custodian holds custody of the ticketprinted as a result of the sale on behalf of the buyer.

The gaming or lottery agency unit 118 transmits to the seller unit 112(and, if a communication path is available, to custodian unit 116)tracking data associated with each of the printed tickets whichincludes, but is not limited to, the unique serial codes of the ticket,a seller identifier identifying the seller of the tickets, a terminalidentifier identifying the terminal from which the tickets were printedand any other data determined by the gaming or lottery agency to berelevant for identifying legal claims to winning prizes or for trackingpurposes. If a communication path between the gaming or lottery agencyunit 118 and the custodian unit 116 is not available, the seller unit112 may transmit the tracking data to the custodian unit. In addition,the seller unit 112 transmits relevant ticket purchase data (e.g., buyername, contact information, etc.) to the custodian unit 116.

The printed tickets are physically and systematically transferred to areader/sorter 190 of the custodian unit 116 where the tickets areimaged. The tickets are then stored at a secured location 192 (e.g., avault) at the custodian's facilities. The ticket printer 186 may beadapted for physical connection to the input of the reader/sorter 190 orthe printed tickets may be manually transferred from the ticket printer186 to the reader/sorter 190. A process executed by the custodian systemcomputer 193 of the custodian unit 116 performs a systematicfile-to-file verification to confirm and verify that the ticket detailsfrom the scanned tickets (e.g., tracking data printed on the tickets)are consistent with the information received from the seller unit 112and/or gaming or lottery agency unit 118. The custodian unit 116 thentransmits a confirmation to buyer unit 114. This confirmation mayinclude an image of the printed ticket held in custody by the custodian.All ticket images and related data (e.g., corresponding unique serialcode and any other data or code relevant to tracking the ticket printedto fulfill the buyer's valid purchase order) are stored in the database194 of the custodian unit 116 and are also transmitted to the sellerunit 112 for storage in the database 168. The custodian unit 116processes the printed tickets further by bundling, bundle coding andsafekeeping in coded cells at the secured location 192 at thecustodian's facility. The bundling, bundle coding and transfer to asecure location are preferably automated processes, but, for example,the transfer to a secure location may be performed manually. Thebundle-code and coded cells are all recorded in the database 194 of thecustodian unit 116 and are transmitted to the seller unit 112 forstorage in the database 168.

After the final determination of the outcome (results) of the gamingevent or lottery game, the gaming or lottery agency unit 118 transmitsto seller unit 112 the winning permutations, the monetary prizes/awardsand the unique serial codes of each winning ticket associated with theseller's terminal identifiers. If a communication path is availablebetween gaming or lottery agency unit 118 and custodian unit 116, thewinning permutations, etc. are also transmitted to the custodian unit116 by gaming or lottery agency unit 118. Otherwise, the winningpermutations, etc. are transmitted to the custodian unit 116 by sellerunit 112. The seller unit 112 and custodian unit 116 flag all winningtickets and the custodian unit 116 provides a notification (e.g., viae-mail) to the buyers of the winning tickets. The seller, as anauthorized sales agent redeems all winning tickets with prizes less than$600 as part of its normal operation. Credit of such monetary prizes tothe buyer is through the same method as with buyer's payment, but in theform of credit through the third party payment vendor/servicer. Forexample, the monetary prize may be credited to the credit card accountused to purchase the ticket. For prizes of $600 or more, thenotification from the custodian unit 116 instructs the buyers to claimthe winning ticket at a location designated by the custodian (e.g., thecustodian's facility) so that it may be processed according to the rulesand regulations as promulgated by the gaming or lottery agency.

Thus, the system of FIG. 2 provides a method which facilitates gaming(including, but not limited to, wagers on the outcomes of horse races,dog races, jai alai or any other sporting event, games or events ofchance or permutations; and governmental sponsored or authorized lotterysales transactions) over the Internet between game player(s) (“buyers”),and an authorized/designated sales agent (“seller”) of a gamingauthority/agency (“gaming agency”). Gaming agency refers to anyorganization(s) sanctioned by a governmental body for the operation,administration of gaming activities including horse racing, dog racing,jai alai or any sporting event, games or events of chance orpermutations, including any governmental sponsored or authorized lotteryagency (“lottery agency”), when in each case a physical ticket isproduced. The ticket printed by the on line terminals linked to thegaming or lottery agency is an unregistered ticket and is in bearerform. The ticket is the primary claim mechanism that is recognized bythe gaming or lottery agency.

The buyers use devices such as personal computers, terminals, PDAs orany other type of communication device connected to a wired or wirelesscommunication path such as, but not limited to, phone line, DSL, T1, orcable and which may include a communication service provider such as anInternet Service Provider (“ISP”). For redundancy reasons, the sellerunit 112 can receive data from two or more ISPs. The seller's ISP(s)have in place mechanisms that compensate for spikes in the number oftransactions performed by the buyers during high volume periods.

The buyer inputs all relevant data at the seller's website (in order toinitiate a purchase order) including but not limited to: buyer's name,address, date of birth, tax identification number, payment data (e.g.,credit card/debit card/e-payment), e-mail address, representation ofcompliance to all local laws, the game or lottery tickets the buyerdesires to play and purchase, the selection of the numbers and/oroutcomes of the gaming or lottery drawing, and the number of plays. Allsuch information is transmitted to the seller unit 112.

The seller unit 112 includes security that segregates the web serversfrom the seller's legacy systems, gaming system computer(s) (whichcontain business logic) and Intranet. The web servers are accessed fromthe Internet via a computer load balancer and access to the seller'sgame system computer(s) from the web servers is via internal firewalls.The security is used to authenticate users before their signals areallowed to access the seller's legacy systems, gaming system computersand Intranet. The security may be provided by middleware that implementsone or more buyer authentication mechanisms such as username/password,biometrics, physical security tokens, client-side certificates, etc. Thesignals sent from the buyer unit to the seller unit are encrypted andcyclical redundancy checked for lost bits. This ensures security andintegrity of the signal, respectively, while it is being transmittedthrough the Internet. In addition, an authentication process is used tovalidate the identity of the seller unit to the buyer unit.

The buyer desires and initiates a purchase transaction (the “purchaseorder”). The buyer can pick the number sequence or permutation that theywish to purchase on screens that may, for example, substantiallyreplicate, in both appearance and function, the game cards of the gamingor lottery agency. The buyer enters and transmits the monetary value ofthe transaction, which includes the actual cost of the ticket(s) asrequired by the gaming and/or lottery agency and a per-ticket processingfee. All relevant data inputted by the buyer into the seller's legacysystems, gaming systems and/or Intranet is stored. Furthermore, theseller performs all screening criteria as specified by the gaming orlottery agency including age and residency as statutorily required. Thefailure of the buyer to meet statutory requirements results in a messageto the buyer indicating such failure and the buyer will be directed toeither cure such failure or be directed to a gaming or lottery agencywebsite for their rules and regulations, respectively.

The seller unit relays payment information (credit card numbers, creditcard authentication code and credit card expiration date or digitalcheck number, check routing number and checking account number) from thebuyer to a third party payment vendor/servicer (e.g., Verisign,Baltimore, etc.) for the assessment of a valid and good payment. Uponthe successful acknowledgement of payment by the buyer, a third partyelectronic merchant account vendor will arrange for monetary debit fromthe buyer's account and credit to the seller's account. A successfulmonetary credit to the seller's account is classified by the seller as avalid purchase order. An unsuccessful monetary credit to the seller'saccount is classified by the seller as a non-valid purchase order. Inthe event of designation by the seller of a valid purchase order, thedetails of the (alpha) numerical permutation of the game outcome(s) asselected by the buyer are transmitted to the on line terminal 180. Uponthe successful transfer of the data to the on line terminal 180, actualtickets are printed by the on line terminal. In the event of a non-validpurchase order, the buyer will be informed of the same, and remedies(e.g., a request to confirm the entered information, a request to enterdifferent payment information, etc.) will be presented to the buyer tofacilitate a corrected transaction.

Tracking data associated with each of the tickets is transmitted to theseller unit 112 and/or custodian unit 116. The tracking data may includethe unique serial codes of each ticket, seller identifiers identifyingthe ticket sellers and terminal identifiers identifying the terminalsthat printed the tickets and any other data or code as determined by thegaming or lottery agency and/or by the custodian/safekeeper to berelevant for identification of legal claim to winning prizes or fortracking purposes. The tickets produced from the on line terminal 180are physically transferred to a reader/sorter 190 where the tickets areimaged and the images are stored at the custodian unit's database 194.The images are also transmitted to the seller unit 112 for storage inthe seller unit's database 168, along with any corresponding uniqueserial code or any other data or code relevant to tracking the ticket tothe buyer's valid purchase order. The seller unit 112 and custodian unit116 electronically compare, reconcile and confirm relevant ticket datawith valid a purchase order. The tickets are bundled, bundle coded andsafe-kept at coded cells at the custodian's facility. The unique serialcode of the ticket, the bundle-code and coded cells are all recorded atthe seller unit's database 168 and the custodian unit's database 194.

The buyer enters into a legal agreement (the “custodial agreement”). Thecustodial agreement is executed in any of the following forms prior tocompleting a purchase order: (a) amongst the buyer, the seller and thecustodian, (b) between the buyer and the custodian, and/or (c) betweenthe seller and the custodian. The buyer has the option to agree to theterms and conditions of the custodial agreement presented on a displayscreen of the buyer unit. Upon the buyer's agreement to the custodialagreement, the buyer is prompted to either proceed with input ofadditional data, including additional game plays, or transmitting thepurchase order request to the seller unit for processing. In the eventthe buyer fails to execute the custodial agreement, the buyer isprompted with a notice that agreement to and execution of the custodialagreement are required for further processing of the purchase order. Atthis juncture, the buyer has the option to execute the custodialagreement or to be directed elsewhere on the website or to another website.

FIG. 3A is a flow chart representing a “play and purchase” processcarried out in the system of FIG. 2. The buyer arrives at seller's website (ST 200) and selects the desired gaming event or lottery game andproceeds to select outcomes for the selected gaming event or lotterygame (e.g., by completing an (alpha) numeric game card) (ST 202). Afterselecting the outcomes of the selected gaming event or lottery game, thebuyer is prompted to and proceeds to enter relevant personal informationand a payment method (ST 204). First time players are prompted at thisstep to select a personal identifier and password for future log-ins andsubsequent purchases. A return buyer is prompted to log-in using his/herpersonal identifier (PIN) and a password and to confirm the accuracy ofthe previously entered personal information. If the player fails tocomplete entry of the required personal or payment information, theplayer is prompted up to a predetermined number of times (e.g., threetimes) to complete the data entry (ST 206). If the player fails tocomplete data entry, he/she is directed out of the web site. The buyer'scompliance with the relevant gaming or lottery agency rules andregulations is confirmed (e.g., by prompting the buyer to enterresidence information, age information, etc.) and the paymentinformation is processed (ST 208). If the third party vendor/servicerconfirms the payment information (ST 209), the process proceeds to ST210. If the payment information is not confirmed, the player is promptedto update his/her payment information or to choose an alternativepayment form (ST 212). Failure to provide the requested update orfailure to choose an alternative payment form results in the playerbeing directed out of the site.

At ST 210, a custodial agreement is presented to the buyer for reviewand execution. Execution of this agreement is mandatory; otherwise thebuyer is prompted to reconsider or is directed elsewhere (e.g., toanother web site or to another portion of the seller's web site). If thebuyer executes the custodial agreement, a copy of the executed agreementis delivered to seller unit 112 (ST 213) and stored in database 168thereof and to custodian unit 116 (ST 214) and stored in database 194thereof. If desired, a copy of the executed agreement may be printed outand/or stored at the buyer unit.

Seller unit 112 then communicates with the gaming or lottery agency unit118 and transmits the details of the buyer's game or lottery outputselection(s) so that the physical bearer ticket may be produced (ST 216)by the seller unit's on-line terminal. The gaming or lottery agency unit118 acknowledges transmission and then sends signals to produce thephysical bearer ticket at the terminal printer (ST 218). The gaming orlottery agency unit 118 transmits to the seller unit 112 and custodianunit 116 the tracking data associated with each ticket printed. As notedabove, if the gaming/lottery agency permits only a communication path tothe seller unit 112, then the seller unit relays the tracking data tothe custodian unit 116. The tracking data includes, but is not limitedto, the unique serial codes of the tickets, seller identifiersidentifying the sellers of the tickets and terminal identifiersidentifying the terminals from which the tickets are printed. Any otherdata determined by the gaming or lottery agency to be relevant foridentifying and/or verifying legal claims to winning prizes or fortracking purposes may be provided. This information is stored indatabase 168 of seller unit 112 (ST 220) and the database 194 of thecustodian unit 116 (ST 222).

The tickets are printed (ST 223) and then transferred to a reader/sorter190 of custodian unit 116 where the tickets are imaged and processedwith its unique serial code and any other data relevant to tracking theticket (ST 224). The custodian unit 116 further processes the tickets bybundling, bundle coding and safe-keeping the tickets in coded cells atthe custodian's facility. The unique serial code of the ticket, thebundle-code and coded cells are all recorded in the database 194 of thecustodian unit 116 and in the database 168 of the seller unit 112 (ST220).

The custodian unit 116 then transmits to the buyer a confirmation withan accompanying image of the printed ticket(s) (ST 228) and thecustodian transfers the physical printed ticket(s) to secure location192 (ST 230).

FIG. 3B is a flow chart illustrating the “redemption” process carriedout in the system of FIG. 2. After the final determination of theoutcome(s) of the gaming event or lottery drawing, the gaming or lotteryagency unit 118 transmits to seller unit 112 and custodian unit 116 thewinning permutations, the monetary prizes/awards and the unique serialcodes of each winning ticket associated with the seller's terminalidentifiers (ST 232). As noted above, if the gaming/lottery agencypermits only a communication path to the seller unit 112, then theseller unit relays the winning permutations, etc. to the custodian unit116. Seller unit 112 and custodian unit 116 each flags all winningtickets with monetary prizes (ST 234 and ST 236). Custodian unit 116divides the wining tickets into two groups: a first group with a prizeof less than $600 and a second group with a prize $600 or higher.Custodian unit 116 and seller unit 112 confirm with each other all thewinning tickets with monetary prizes (ST 238) by systematically matchingtheir respective electronic records regarding the tickets. The custodianphysically and systematically retrieves winning tickets from its codedcells and bundles as identified using the relevant data. Custodian unit116 notifies a winning buyer of his/her winnings though an e-mailcommunication.

The custodian presents on behalf of the buyer winning tickets for lessthan $600 to the seller for redemption (ST 240). The seller, as anauthorized sales agent, redeems all winning tickets with prizes lessthan $600 as part of its normal process (ST 242). The seller transmitsto the third party payment vendor/servicer instructions to credit theamount of the buyer's winnings to the buyer's credit card, bank account,etc. (ST 244) and then the third party payment vendor/servicer creditsthe buyer's account (ST 246).

The custodian holds in custody on behalf of the buyer winning ticketsfor prizes of $600 or more (ST 248). The e-mail notification to thebuyer will include instructions as to where the buyer may claim, inperson, the winning ticket so that it may be processed according to therules and regulations promulgated by the gaming or lottery agency. Thebuyer then claims the ticket(s) and claims the prize (ST 250).

FIG. 4 is a block diagram illustrating an example of the “clicks”(first) framework. The “clicks” framework encompasses an open-endedarchitecture for a plurality of buyers operating on the Internet topurchase gaming or lottery tickets and to receive confirmation of suchpurchases; their Internet Service Provider; and a designated sales agentsystem which includes web servers, firewalls, security, authenticationand authorization systems, and host machines structured in a distributedcomputing environment. The “clicks” framework encompasses all of theattributes discussed and illustrated in FIG. 2 except for two aspects.First, the actual generation or production, processing and safekeepingof the physical bearer tickets or “bricks” which will be described inFIG. 5; and second, the legal contractual arrangement between the buyer,seller and custodian or “sticks” which will be described in FIG. 6.

FIGS. 5A and 5B illustrate the “bricks” framework (i.e., physicalprocessing mechanism). The “bricks” portion of the process has twocomponents as illustrated in FIGS. 5A and 5B, respectively: the “playand purchase” component and the “redemption” component. In the “play andpurchase” component, the seller's on-line gaming or lottery terminal andprinter generates and prints the actual physical/bearer ticket (ST 300).The physical bearer tickets are physically and mechanically transferredto a reader/sorter where the tickets are imaged, data processed andrecorded (ST 302). The custodian processes the tickets further bybundling, bundle coding and transporting the tickets to coded cells atits secured facilities (e.g., vault) for safekeeping (ST 304).

With respect to the “redemption” component, the custodian physically andsystematically retrieves winning tickets from its coded cells andbundles as identified through its identification process (ST 306). Thecustodian presents winning physical/bearer tickets with value of lessthan $600 per game to the seller for monetary redemption on behalf ofthe buyer (ST 308). The seller, as an authorized sales agent redeems andcollects all winning tickets with prizes less than $600 as part of itsnormal process (ST 310). The custodian holds in custody for the buyertickets for prizes $600 or greater until the buyer claims the ticket (ST312). The buyer then claims the ticket (ST 314).

FIG. 6 is an illustration of the “sticks” framework. This frameworkinvolves execution by the buyer, seller, and custodian of a roles andresponsibility agreement. “Sticks” refers to a legal agreement executedon-line that delineates a legal and contractual engagement of anindependent third party, the custodian, thereby clearly segregating theinterest of the buyer and seller. The agreement essentially states thatthe buyer agrees to buy from the seller the gaming/lottery tickets, andagrees to have the custodian hold in custody the tickets on the buyer'sbehalf. Further in the agreement, the seller agrees to sell to the buyerthe tickets and will deliver such tickets to the custodian. The selleralso agrees to redeem all prizes below certain thresholds for creditback to the buyer's credit account. The custodian agrees to receive thetickets from the seller, and will hold the tickets in custody for thebenefit of the buyer.

FIG. 7 is a generalized block diagram of a computer system 1201 that maybe used, for example, as part of the buyer unit or seller unit. It willbe evident that this computer system is provided by way of example onlyand that other types of computer systems such as work stations and webservers may be used. System 1201 includes a processing unit 1203 and asystem memory 1205. A system bus 1207 couples various system componentsincluding system memory 1205 to processing unit 1203. System bus 1207may be any of several types of bus structures including a memory bus ormemory controller, a peripheral bus, and a local bus using any of avariety of bus architectures. System memory 1207 includes read onlymemory (ROM) 1252 and random access memory (RAM) 1254. A basicinput/output system (BIOS) 1256, containing the basic routines that helpto transfer information between elements within computer system 1201,such as during start-up, is stored in the ROM 1252. System 1201 furtherincludes various drives and associated computer-readable media. A harddisk drive 1209 reads from and writes to a (typically fixed) magnetichard disk 1211. An additional (possible optional) magnetic disk drive1213 reads from and writes to a removable “floppy” or other magneticdisk 1215. An optical disk drive 1217 reads from and, in someconfigurations, writes to a removable optical disk 1219 such as a CD ROMor other optical media. Hard disk drive 1209 and optical disk drive 1217are connected to system bus 1207 by a hard disk drive interface 1221 andan optical drive interface 1225, respectively. The drives and theirassociated computer-readable media provide nonvolatile storage ofcomputer-readable instructions, data structures, program units, gameprograms and other data for computer system 1201. In otherconfigurations, other types of computer-readable media that can storedata that is accessible by a computer (e.g., magnetic cassettes, flashmemory cards, digital video disks, Bernoulli cartridges, random accessmemories (RAMs), read only memories (ROMs) and the like) may also beused.

A number of program units may be stored on the hard disk 1211, removablemagnetic disk 1215, optical disk 1219 and/or the ROM 1252 and/or the RAM1254 of system memory 1205. Such program units may include an operatingsystem providing graphics and sound APIs, one or more applicationprograms, other program units, and program data. A user may entercommands and information into personal computer system 1201 throughinput devices such as a keyboard 1227, pointing device 1229,microphones, joysticks, game controllers, satellite dishes, scanners, orthe like. These and other input devices can be connected to processingunit 1203 through a serial port interface 1231 that is coupled to systembus 1207, but may be connected by other interfaces, such as a parallelport, game port Fire wire bus or a universal serial bus (USB). A monitor1233 or other type of display device is also connected to system bus1207 via an interface, such as a video adapter 1235.

System 1201 may also include a modem 1154 or other network interfacemeans for establishing communications over a network 1152 such as theInternet. Modem 1154, which may be internal or external, is connected tosystem bus 123 via serial port interface 1231. A network interface 1156may also be provided for allowing system 1201 to communicate with aremote computing device 1150 (e.g., another system 1201) via a localarea network 1158 (or such communication may be via wide area network1152 or other communications path such as dial-up or othercommunications means). System 1201 will typically include otherperipheral output devices, such as printers and other standardperipheral devices.

A set of stereo loudspeakers 1237 is also connected to system bus 1207via a sound generating interface such as a conventional “sound card”providing hardware and embedded software support for generating highquality stereophonic sound based on sound commands provided by bus 1207.

The example system and method described herein provide a process forfacilitating a game player's perfection of their security interest tophysical/bearer game tickets purchased and issued from an authorizedsales agent of a gaming and/or lottery agency when the initiation of thegame and purchase of the game tickets are transacted over the Internet.The system and method also provide a process for facilitatinggovernments and their agencies to sell gaming or lottery tickets via theInternet without changing their current bearer ticket process, without amajor systems rewrite, and without increasing their fraud, legal andlogistical exposure.

The above-described example method and system facilitate the perfectionof a security interest to the physical bearer ticket processed andhoused at a secure location (e.g., a vault) of the custodian andfacilitate the claims administration of winning gaming or lotterytickets by the seller and custodian. The actual ticket is the primaryclaim mechanism that is recognized by the gaming or lottery agency. Thetickets are produced at the facilities of the seller and the custodiantakes possession of the tickets, which are physically and mechanicallytransferred to its processes for data capture and other processesincluding safekeeping at the secure location.

The gaming or lottery agency transmits to the seller unit and/or thecustodian unit the results and outcomes of the gaming or lottery event,the permutations of the (alpha) numeric winning numbers that have amonetary prize associated with it, as well as information identifyingthe winning tickets (e.g., the unique serial codes, the seller'sidentifier and the terminal identifier and any other data or code asdetermined relevant for identification of legal claim to winning prizesthat the gaming or lottery agency recognizes). The seller unit and/orthe custodian unit compare data transmitted by gaming or lottery agencywith the seller and/or custodian's database of ticket informationproduced by the valid purchase order process to identify the winningtickets held by the custodian and the buyer of that ticket. Thecustodian retrieves all tickets with winning prizes less than $600 andpresents such tickets to the seller, for credit of such winning prizesto the buyer through the same method as with buyer's payment, but in theform of good credit through the third party payment vendor/servicer. Theseller redeems such winning tickets as part of the seller's normaloperations as sales agent for the gaming or lottery agency. The $600threshold is set by governmental regulatory bodies and may beunilaterally changed by them. The above-described process is readilyadapted to any threshold promulgated by such regulatory agencies. Thecustodian identifies all tickets and their respective buyers withwinning prizes of $600 or more and sends e-mail notifications to thesebuyers to claim, in person, the winning ticket so that it may beprocessed according to the rules and regulations as promulgated by thegaming or lottery agency.

While particular embodiments of the present invention have beendescribed and illustrated, it should be understood that the invention isnot limited thereto since modifications may be made by persons skilledin the art. The present application contemplates any and allmodifications that fall within the spirit and scope of the underlyinginvention discloses and claimed herein.

We claim:
 1. A method for a ticket buyer to buy a bearer ticket for agame or lottery, comprising: accessing a web-site of a ticket seller;indicating acceptance of an agreement providing that a custodian willreceive the bearer ticket from the ticket seller and hold the bearerticket in custody for the ticket buyer's benefit, the custodian being aseparate legal entity from the ticket seller and the ticket buyer; andsupplying ticket purchase information to buy the bearer ticket.
 2. Themethod according to claim 1, wherein the agreement further provides thatthe ticket seller will deliver the bearer ticket to the custodian. 3.The method according to claim 1, wherein the agreement further providesthat the ticket seller will redeem a winning ticket of less than acertain monetary amount.
 4. A method for a ticket seller to sell abearer ticket for a game or lottery comprising: displaying an agreementto a ticket buyer accessing a web-site selling the bearer ticket, theagreement providing that a custodian will receive the bearer ticket fromthe ticket seller and hold the bearer ticket in custody for the ticketbuyer's benefit, the custodian being a separate legal entity from theticket seller and the ticket buyer; receiving a signal indicating theticket buyer's acceptance of the agreement; and receiving ticketpurchase information from the ticket buyer to buy the bearer ticket. 5.The method according to claim 4, wherein the agreement further providesthat the ticket seller will deliver the bearer ticket to the custodian.6. The method according to claim 4, wherein the agreement furtherprovides that the seller will redeem a winning ticket of less than acertain monetary amount.
 7. A storage medium on which executableinstructions for performing the method of claim 4 are tangibly embodied.8. A method for a ticket seller to sell a bearer ticket for a game orlottery comprising: receiving ticket purchase information to buy thebearer ticket, the ticket purchase information being communicated overthe internet from a ticket buyer; printing out the bearer ticket; andtransferring the printed bearer ticket to a custodian that is a separatelegal entity from the ticket seller and the ticket buyer, the custodianholding the printed bearer ticket in custody for the ticket buyer'sbenefit.